Pricing Debate

As Medicare drug price negotiations creep closer to reality, industry leaders are turning attention to the challenges of implementation and commercial concerns.

Medicare price renegotiation and the FTC’s scrutiny of biopharma acquisitions have suppressed sector stock prices. But the sector may not be the actual target.

An infographic looking at commercial factors for the 10 drugs chosen for Medicare price negotiation in 2026 under the Inflation Reduction Act (IRA). The graphics below review the valuations of these drugs, both past and forecast, as well as their relative contributions to the top-lines of the companies that own them.

The Class of ’26 of Medicare Price Negotiation University is now on stage. Our infographic profiles who they are and where they come from, breaking down the $50.5B in gross annual Part D spending, about 20% of the total.

Big pharma valuations mostly held steady as CMS released its list of the first 10 drugs subject to Medicare negotiations under the Inflation Reduction Act, which held few surprises and included products nearing the end of their patent lives by the time negotiated pricing takes effect.

Firm leans into allegations that the US government violated the Administrative Procedures Act in implementing the program. More legal actions are expected from industry once CMS announces the first list of drugs subject to negotiation. Our lawsuit tracker will keep you apprised.

New norms call for generics-only prescriptions and prohibits doctors from engaging in third-party educational activity backed by pharma in India. Will pharma need to rethink its branded generics strategy in India or is a tempering/deferment of the norms on the cards?

Keytruda and Gardasil lead Merck’s growth story, although Lagevrio’s ongoing decline placed a drag on quarterly performance. Lung cancer is driving Keytruda’s momentum outside the US.

Industry stakeholders have filed various lawsuits against the US government, attempting to slow down or block the implementation of a new Medicare drug price negotiation program. Scrip's new chart tracks the developments.

Could more Indian firms consider re-aligning their US business amid heightened pricing and compliance pressures that have cast a shadow on the long-term viability of the generics segment? A cross section of experts including a senior executive at McKinsey & Co share their views on what to expect.

Hospital procedures are rebounding following the pandemic and the US population is aging. But what sounds like good news for pharma is curbed by the risk of Medicare insolvency, and suing the government cannot solve that.

Complaint seeks permanent injunction to require drug pricing program to give stakeholders opportunity to comment on the process and make decisions subject to judicial review.

Eli Lilly & Co. CEO David Ricks highlighted how Medicare drug price negotiation policies are already impacting R&D investment during a J.P. Morgan investor call.

There are many new pressures on biopharmaceutical profitability but will Merck & Co’s attempt to reverse the drug pricing aspects of the Inflation Reduction Act just divert costs to patients?

A second lawsuit was filed against the IRA and a new US Medicare drug price negotiation program, and this time, the lawsuit was not filed by an industry insider. 

US FDA Commissioner defends role of his sister-agency CMS in determining drug coverage after his agency’s approvals. Califf weighs in on a variety of drug pricing topics – including the IRA, accelerated approval pricing, and obesity drug coverage – at the annual BIO meeting in Boston.